Midwestern Greenhouse Gas Reduction Accord Update

In anticipation of drafting of the model rules that will implement the Midwestern Greenhouse Gas Reduction Accord (Accord) in participating states, the Midwestern Governors Association (MGA) Greenhouse Gas Reduction Accord Advisory Group (Advisory Group) continues to refine the Accord's design principles and the Midwest cap-and-trade program. The final decision on critical features of the proposed program is slated to occur in November 2008, just prior to an MGA joint press release in early December.

The governors will face many key decisions involving the scope of the program, the use of allowances, and offset approvals. All of these components raise significant legal and political issues as well as economic concerns for businesses in the region.